As per CRA, there are 2 different tax consequences that will be applied in 2 cases above:
1) You are Canadian and working remotely in India, you could be considered as a deemed non-resident.
Deemed non-resident when you have residential ties to Canada and you meet the criteria to be a factual resident. However, you are also considered a resident of India qualified for a tax treaty. You have the same filing requirements as a non-resident.
- As a non-resident, you do not have to report world income to the CRA.
- However, the Tax Part I could apply to you for earning income inside Canada according to CRA.
2) You are a Canadian working inside Canada and earning foreign income.
-> All income that you have earned from foreign and domestic sources must be declared on your personal tax return.
- The amounts are in INR must be converted to Canadian dollars.
- If your foreign income is not tax-exempt due to a tax treaty, you may be able to claim a Foreign Tax Credit
NOTE: You must contact the Canada Revenue Agency (CRA) to advise you on your residency status as there are too many variables to this question. How do I contact the Canada Revenue Agency (CRA)?
For more information please review:
TurboTax article New Canadians: Your Tax FAQ or Canadian Taxes 101
Canada Revenue Agency (CRA) Individuals - Leaving or entering Canada and non-residents
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